3 ASX ETFs that make long-term investing easy

Three low-cost ASX ETFs that make building wealth simple.

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Investing in ASX ETFs (or exchange traded funds) is one of the simplest ways to build wealth over the long run.

You don't need to pick individual winners, nor do you need to time the market.

ASX investors can simply buy a basket of shares in a single trade.

Here are three ASX ETFs that make long-term investing genuinely easy.

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Why ASX ETFs suit long-term investors

ASX ETFs give you instant diversification, as one fund unit can hold hundreds or even thousands of companies.

If one business stumbles, the others help cushion the blow.

ETFs are also, generally speaking, cheap to own. Many of the most popular funds charge a fraction of what an active manager would.

For investors, lower fees mean more of the return stays in your pocket.

And they trade on the ASX just like any share: investors can buy or sell ETFs during market hours with a few clicks.

Here are three ASX-listed ETFs that take the guesswork out of investing.

Vanguard Australian Shares ETF (VAS)

The Vanguard Australian Shares Index ETF (ASX: VAS) is the largest ETF on the ASX.

It tracks the S&P/ASX 300 Index, meaning that one trade gives you exposure to the top 300 Australian companies.

Investors instantly get the big banks, the major miners, and many more of the companies that make the ASX what it is.

Vanguard charges a management fee of just 0.07% per year.

VAS also pays regular quarterly distributions, which come primarily from franked Aussie dividends.

For a low-cost core holding, VAS is tough to beat.

iShares S&P 500 ETF (IVV)

As opposed to VAS, the iShares S&P 500 ETF (ASX: IVV) opens the door to the United States for ASX investors.

The ETF tracks the 500 largest US-listed companies, including companies like Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), and Nvidia Corp (NASDAQ: NVDA).

So why invest in the US rather than in Australia? Well, the S&P 500 has delivered an average annual return of around 10% over the very long term.

True to form, in 2025, IVV gave Australian investors a total return of 10.13%.

However, IVV also introduces new risks, including foreign exchange risk. Currency moves between US and Australian dollars can lift or lower those returns in any given year.

But as a long-term US holding, IVV is a firm favourite, and like VAS, also carries a very low management fee of 0.04%.

Vanguard MSCI Index International Shares ETF (VGS)

The Vanguard MSCI Index International Shares ETF (ASX: VGS) casts the net even wider.

This ETF holds shares across 22 developed markets, including the US, Japan, the UK, and Europe.

In 2025, VGS delivered a total return of 13.34%, comprising 9.81% in capital growth and a 3.53% distribution yield.

The fund charges 0.18% per year.

Unlike the other two ETFs, investors in VGS benefit from international diversification, which reduces volatility and should, in theory, increase risk-adjusted returns.

For broad international diversification, VGS is a standout.

Foolish takeaway for ASX ETFs

These three ASX ETFs cover Australia, the US, and the wider world.

Together, they form a simple, low-cost foundation for a long-term portfolio.

Investors can hold all three, or start with just one, keeping in mind that VGS and IVV overlap heavily on US shares.

Past returns are also never a guarantee of future performance.

But for hands-off investors, these ASX ETFs make building wealth about as easy as it gets.

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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